**Charity Registration No. 1091114** **Company Registration No. 04279448 (England and Wales)** **EAST GRINSTEAD SPORTS CLUB LIMITED ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 30 SEPTEMBER 2020** ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **Trustees** R Leman K Ellis R Thornley - Gibson G Christopherson G Needle C Gregory L Farren N Fish M Chappell (Appointed 18 September 2020) **Charity number** 1091114 **Company number** 04279448 **Registered office** Saint Hill Road East Grinstead West Sussex RH19 4JU **Independent examiner** Darren Harding ACA FCCA DChA Richard Place Dobson Services Limited Chartered Accountants 1 - 7 Station Road Crawley West Sussex RH10 1HT **Solicitors** Rohan & Co Aberdeen House South Road Haywards Heath RH16 4NG ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 4| |Independent examiner's report|5| |Statement of financial activities|6 - 7| |Balance sheet|8 - 9| |Notes to the financial statements|10 - 23| ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ The Trustees present their report and financial statements for the year ended 30 September 2020. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charitable Company's Memorandum and Articles of Association , the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". ## **Objectives and activities** The objects of the charity are to promote the benefit of the inhabitants of East Grinstead and the surrounding area without distinction of sex, sexual orientation, race or of political, religious or other opinions, to advance education and to provide and assist in the provision of recreation and leisure-time occupation with the object of improving the conditions of life of the said inhabitants. The Trustees pay due regard to guidance issued by the Charity Commission, including guidance on public benefit, in deciding what activities the Charitable Company should undertake ## **History of significant events** In 1989 East Grinstead Cricket Club and East Grinstead Hockey Club merged to create East Grinstead Sports Club. Both clubs had a long tradition of playing sport in the town but could see the benefits of joining forces for mutual advantage. As part of the merger the cricket ground at West Street was sold, and the cricket club moved to the current site at Saint Hill, which the Hockey Club had purchased in 1959. The proceeds of the cricket ground sale were invested in building a new pavilion and sports hall at Saint Hill, laying an artificial hockey pitch, and creating a new cricket square. East Grinstead Ladies Hockey Club played its hockey at the old cricket ground and decided to move to Saint Hill at the same time and become another founder member club of the Sports Club. The Sports Club expanded further in 1997 through the joining of the Felbridge Badminton Club. Key developments and milestones in the subsequent years include: - In 2002 there was a £1.7m investment (including a lottery grant of over £1m) to provide a new water-based allweather hockey pitch, a new fitness suite, new changing facilities, function room and improved office accommodation . - Charitable status to the East Grinstead Sports Club was granted in 2003, achieving a significant strategic milestone of the Sports Club by becoming a true multi sport community club . - The construction of 9 netball courts was completed in 2007 . - In 2008 the Club was chosen by Sport England as the first ‘Pathfinder’ multi-sport club in Sussex and was also designated by the London Organising Committee of the Olympic Games as an official Training Venue for 2012. Both awards recognising the quality of the facilities and the potential the site has to offer sport for all. - In 2008, following the closure of a local gym, squash and fitness club, the Sports Club was able to offer members the chance to relocate and enjoy similar fitness facilities. This move was achieved in less than six months, enabling a substantial part of that former club to be kept together for the benefit of the community. After raising the required funds, the Sports Club was able to complete its objective of developing three new squash courts, which were officially opened in September 2012 . - In 2010 the sand based football pitch was replaced with a 3G pitch financed in part by a loan, and in part by a generous donation from a local benefactor . - In 2013 the surface of the water-based hockey pitch was replaced; financed through grants, donations and sponsorship funds. As at 30 September 2020 there were 6 sports clubs affiliated to the charity and based at the Saint Hill site – EG Men’s and Ladies’ Hockey Club, EG Cricket Club, Felbridge Badminton Club, CD Phoenix Netball Club, Dunnings Squash & Racketball Club, and East Grinstead Meads Football Club. Richard Place Dobson page 1 ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **Achievements and performance** With effect from 29 September 2017 the Trustees leased the site and facilities to a specialist leisure management company, Wave Leisure Trust Limited (itself a registered charity). Wave Leisure Trust Limited has entered into a twelve year lease to operate the facilities at EGSC, with an option to extend beyond that period if both parties agree . Leasing the facility in this way enables the Trustees to focus on the Charity’s objectives through identifying and working towards future developments to maintain and enhance the facilities, and providing sporting/well-being opportunities to the local community. During the current year the Trustees completed a number of key improvements that are expected to enhance the facilities and encourage greater participation over the long term. These improvements included changes to the site entrance, expanding car parking capacity, upgrading internal lighting to more efficient and environmentally friendly LEDs, improvements to the gym and changing facilities, adding to the site’s CCTV, refurbishing the reception area and the bar/café, and creating a designated indoor children’s activity space. All these works were made possible through the generous grant funding support provided by MSDC. In 2017 a local benefactor donated to the charity a piece of agricultural land that is adjacent to the charity’s then current land holdings. During the year the Trustees applied for a change of use of the land to enable it to be used for junior football (the provision of which is a long time charity objective), and by a local forest pre-school that operates at the Sports Club. Permission was granted in November 2020, further expanding the benefits provided to the local community. In December 2019 the hockey facility was improved through the replacement of the existing floodlights with new LED lighting. This improvement is expected to provide numerous benefits – improved and more reliable lighting for hockey players, reduced running costs, a more sustainable and environmentally friendly facility, and reduced light pollution for those living in the immediate vicinity of the club. ## **Financial review** The Charity has net outgoing resources of £34,245 (net incoming resources in 2019: £95,923), as shown in the Statement of Financial Activities on page 6, and accompanying notes to these financial statements. Included within the incoming resources are donations of £ 49,879 (2019: £ 152 , 893), and included within the resources expended are depreciation charges totall ing £27,795 (2019: £48,728) . The Charity continues to work with all sports clubs and users to raise funds to offset the depreciation charges (and hence eventually replace/replenish existing facilities). The Charity has a policy of building up sinking funds for the replacement and developments of all the facilities it owns. These sinking fun d s are held in the Charity’s restricted funds. Over the year these sinking funds reduced by £37,551 (increase in 2019 by £28,151). The main reason for the reduction in sinking funds over the year was the expenditure on replacement (LED) floodlights for the hockey pitch. The Charity, working with the East Grinstead Hockey Club, has a funding target of £22,000 per annum towards the future replacement/refurbishment of the hockey pitch. The Charity continually works with the affiliated clubs and other interested parties to identify specific targets for development of other key facilities . The Charity’s only sources of funding are donations and grants from third parties , and the rent received from the operator to which the facilities are leased. Donations and grants that are given for specific purposes are used entirely for those purposes. The Charity minimises as best it can the costs associated with its operations (noting that all Trustees provide their time on a voluntary basis), and as a result a minimum of 85%-90% of all unallocated income (essentially rental income above that received for specific costs such as insurance) is used for charitable activities in accordance with the Charity’s objects. As all grants and donations are fully utilised in this way, well over 90% of all income received is used directly to support the work of the Charity . ## **Reserves policy** It is the policy of the board to have a prudent and balanced view on reserves. Free reserves are intended to reflect a level of approximately between three and six months’ expenditure over and above the value of the land, buildings and pitches. Richard Place Dobson page 2 ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **Structure, governance and management** East Grinstead Sports Club Limited is a company limited by guarantee and a registered charity governed by its Memorandum and Articles of Association. The Directors of the charitable company ("the charity") are Trustees for the purpose of charity law and Directors for the purpose of company law. Collectively they are referred to as Directors. The Directors who served during the year were: R Leman K Ellis R Thornley - Gibson G Christopherson G Needle C Gregory L Farren Mr A Rackstraw (Resigned 7 September 2020) N Fish M Chappell (Appointed 18 September 2020) None of the Directors has any beneficial interest in the company. Every member of the Company has a liability to contribute up to £1 to the assets of the Company in the event of it being wound up whilst they are a member or within one year after ceasing to be a member. Sadly A Rackstraw passed away during the year after a short illness. His contribution to the Charity, both as a trustee and as a long term member of the hockey club, has been invaluable and will be greatly missed. The Board shall consist of not less than six members. There is no maximum. Under the terms of the Company’s Articles of Association one third of the Board members are required to retire each year, although all are eligible for re-election. At the Annual General Meeting on 17 September 2020 G Needle, L Farren and G Christopherson stood down as Directors under rotation, but agreed to stand for re-appointment. Also, M Chappell made herself available for election as a Trustee Director. All four were appointed unanimously by the members present at the AGM. Those entitled to vote at the AGM ar e either a current Trustee of the Charity or an adult member of one of the following sports clubs: East Grinstead Hockey Club, East Grinstead Cricket Club, Dunnings Squash and Racketball Club, CD Phoenix Netball Club, Felbridge Badminton Club, and East Grinstead Meads Football Club. The Directors have identified and considered the overall risks to the Charity. These risks are regularly reassessed with regard to their impact and their likelihood of occurring within the organisation. Systems to control and mitigate these risks have been introduced. Richard Place Dobson page 3 EAST GRINSTEAD SPORTS CLUB LIMITED TRUSTEES, REPORT UIYCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020 Rljk mADagemeffjt As a result of the ¢ovid-19 pandemic the r￿ltitieS at the club hav¢ been closed for a laTge part of the latter half of the ¢urMt year, and for s¢vera] months After the ycgr end &9 required by Government 8uidance. When ws5ible th¢ fa¢llities have been OF*ned and made avallable subject to n¢w pr￿edureS belng put in pla￿ w m Govemmeni 8llideline5 and forth¢ 5af£ty of users. During closure thor w&8 no income for the operator& and when the facilitie$ were open the inwme conlinurd io b¢ r￿viCted because of the reduc£d capa¢iiy aE)d new OFtTating procedute5 that had be¢n put in ploc¢. The Chariiy 4)nd Wave Leisure Trusi hake work￿ ¢losely together. and ¢oniinu¢ to do so, with the aim of owiing facilities &$ and when rmjssible to provide safe acc¢5S to the ￿MMunIty in a viable manner. Key actions tsken by the Charity. its affiliated clubs {includin8 ntsny volunt¢er5), and Wave Leisure Trust during thi5 iod include.. Maintaining the facilitie5 as far as possible during closyre. Successful applications for covid-19 grhnt f￿ftdjn8. Facilitatirtg the safe reintroduLtton ofsFM)rts and fItn￿S &rtivitie5 as aTrd when p)ssible. Ternwrary closure of ￿fé and changing faciliti￿ in line with Govemmeni guidelines, bvi plannin8 bs takin8 place ￿ re-introducc all faciliiies when safe ￿ do so. The TYust¢es' rqx>ri was approved by the Board of Tnssiees. KEII ITusiee Rschard Pl&ce Dob8A)n ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **INDEPENDENT EXAMINER'S REPORT** ## **TO THE TRUSTEES OF EAST GRINSTEAD SPORTS CLUB LIMITED** I report to the Trustees on my examination of the financial statements of East Grinstead Sports Club Limited (the Charitable Company) for the year ended 30 September 2020. ## **Responsibilities and basis of report** As the Trustees of the Charitable Company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). Having satisfied myself that the financial statements of the Charitable Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charitable Company’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - 1 accounting records were not kept in respect of the Charitable Company as required by section 386 of the 2006 Act; or - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or - 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. Darren Harding ACA FCCA DChA Richard Place Dobson Services Limited Chartered Accountants 1 - 7 Station Road Crawley West Sussex RH10 1HT Dated: ......................... 08/06/2021 Richard Place Dobson page 5 ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ |**Current financial year**
**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general**
**Designated**
**fund**
**2020**
**2020**
**2020**
**Notes**
**£**
**£**
**£**
**Income from:**
Donations and legacies
**3**
604
-
49,275
Provision of leisure facilities
**4**
20,052
-
96,353
Investments
**5**
38,178
13,324
922
Other income
**6**
600
-
-
**Total income**
59,434
13,324
146,550
**Expenditure on:**
Charitable activities
**7**
26,667
44,862
184,862
**Net incoming/(outgoing) resources**
**before transfers**
32,767
(31,538)
(38,312)
Gross transfers between funds
(25,761)
25,000
761
**Net income/(expenditure) for the year/**
**Net movement in funds**
7,006
(6,538)
(37,551)
Fund balances at 1 October 2019
10,287
2,507,236
101,809
**Fund balances at 30 September 2020**
17,293
2,500,698
64,258|**Total**
**2020**
**£**
49,879
116,405
52,424
600
219,308
256,391
(37,083)
-
(37,083)
2,619,332
2,582,249|Total
2019
**£**
152,893
57,279
66,768
-| |---|---|---| |||276,940| |||181,017| |||95,923
-| |||95,923
2,523,409| |||2,619,332| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. Richard Place Dobson page 6 ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ |**Prior financial year**
**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general**
**Designated**
**fund**
**2019**
**2019**
**2019**
**Notes**
**£**
**£**
**£**
**Income from:**
Donations and legacies
**3**
124
80,000
72,769
Provision of leisure facilities
**4**
-
-
57,279
Investments
**5**
42,330
24,324
114
**Total income**
42,454
104,324
130,162
**Expenditure on:**
Charitable activities
**7**
21,374
57,633
102,010
**Net incoming/(outgoing) resources before**
**transfers**
21,080
46,691
28,152
Gross transfers between funds
(20,000)
20,000
-
**Net income/(expenditure) for the year/**
**Net movement in funds**
1,080
66,691
28,152
Fund balances at 1 October 2018
9,207
2,440,545
73,657
**Fund balances at 30 September 2019**
10,287
2,507,236
101,809|**Total**
**2019**
**£**
152,893
57,279
66,768| |---|---| ||276,940| ||181,017| ||95,923
-| ||95,923
2,523,409| ||2,619,332| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. Richard Place Dobson page 7 ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **BALANCE SHEET** ## _**AS AT 30 SEPTEMBER 2020**_ |**Notes**
**Fixed assets**
Tangible assets
**11**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within one**
**year**
**14**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after more**
**than one year**
**15**
**Net assets**
**Income funds**
Restricted funds
**16**
Unrestricted funds
Designated funds
**17**
General unrestricted funds|**2020**
**£**
28,789
176,892
205,681
(34,817)
2,500,698
17,293|**£**
2,453,357
170,864
2,624,221
(41,972)
2,582,249
64,258
2,517,991
2,582,249|**2019**
**£**
17,348
211,295
228,643
(31,302)
2,507,236
10,287|**£**
2,481,152
197,341
2,678,493
(59,161)
2,619,332
101,809
2,517,523
2,619,332| |---|---|---|---|---| Richard Place Dobson page 8 EAST GRINSTEAD SPORTS CLUB LIl￿TED BALANCE SHEET (CONTINUED) ASA T30 SEPTEMBER 2020 The company is ¢niitled to the ex¢mption from the audit requirement contained in S￿lI￿n 477 of the Componies Act 21K)6, for th¢ vvar ended 30 Septcmber 2020. The directors ackrK>wled8e their re5rrtTrnsibilities for ensuring that the charity. keeps ￿cOUnting r¢a)rds which ¢omply wtth scetion 380 of the Ath and for prep4ring firvdncial sthttmcnts whi¢h give a mje and tair vi¢w of the 5tatr of affwrs of the company SLS at the end of the financial year and ot'ils incomin8 resources and appli￿lOn of re￿urceS, including its income #Tsd expenditure. for the fjnancial year in accordance the requir¢ments of sectsons 394 and 395 ond which otherwise comply with the rcquirements (bf the Companies Acl 2(KJ6 Tel￿ing to fin&ncial sthiem¢nts, so far &8 applicable to the company. The rnernbers have not required the compw to obtain an audit of its financial statemthts for the year in question in a¥cordance with ￿tIOn 476. These fin9￿cial %totements hav¢ been prepared in xcothce with the pmvisions applicabl¢ ¢0 companie5 wbjc¢t to the small companies re8im¢. The fin￿¢74] Stst¢m¢￿ts were approved by the Trustees on. 2021 K Ellis Trn$ttt Comp*Try Regl$tr*tion IH279448 Rich8sd Place Dobg)n page 9 **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **1 Accounting policies** ## **Charity information** East Grinstead Sports Club Limited is a private company limited by guarantee incorporated in England and Wales . The registered office is Saint Hill Road, East Grinstead, West Sussex , RH19 4JU. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the Charitable Company's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Charitable Company is a Public Benefit Entity as defined by FRS 102. The Charitable Company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. The financial statements are prepared in sterling , which is the functional currency of the Charitable Company. Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charitable Company has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. ## **1.4 Income** Income is recognised when the Charitable Company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Other grants, donations and legacies are included in full in the Statement of Financial Activities when receivable. Income from charitable activities and other income is included in the Statement of Financial Activities in the year to which it relates. Income from investments is included in the Statement of Financial Activities in the year in which it is receivable. Richard Place Dobson page 10 ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **1 Accounting policies** **(Continued)** ## **1.5 Expenditure** Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries and their associated costs . Support costs now include governance costs which are those costs associated with meeting the constitutional and statutory requirements of the charity and include independent examination fees and other professional fee s. ## **Allocation and apportionment of support costs** The main activity of the charitable company is the provision of leisure activities to the local community, so all costs related to this are classified as direct costs and all other costs are allocated as support costs. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Freehold land Not depreciated Freehold buildings Straight line over 50 years Squash court components Straight line over 10-30 years Pitches Straight line over 10 years The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. The residual value of the land elements of the pitches has been found to be in excess of the net book value of those assets. As such, no further depreciation is charged. The directors will review the residual value of the assets yearly. The surface elements of the pitches are still being depreciated in line with the depreciation policies set out above. ## **1.7 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.8 Financial instruments** The Charitable Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Charitable Company's balance sheet when the Charitable Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Richard Place Dobson page 11 **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **1 Accounting policies** **(Continued)** ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the Charitable Company’s contractual obligations expire or are discharged or cancelled. ## **1.9 Taxation** The company has been granted charitable status and is therefore not liable to corporation tax. ## **2 Critical accounting estimates and judgements** In the application of the Charitable Company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The main judgements and accounting estimates included in the accounts are: Depreciation - Management has made assumptions and estimated depreciation rates in respect of showing a true and fair value of the assets at the balance sheet date. Prepayments and Accruals - Management has made estimates and established prepayments and accruals in respect of potential assets and liabilities as at the balance sheet date. Richard Place Dobson page 12 ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **3 Donations** |**Unrestricted**
**Restricted**
**funds**
**funds**
**general**
**2020**
**2020**
**£**
**£**
Donations
604
49,275
**Provision of leisure facilities**
Grants
Affiliation fees
Analysis by fund
Unrestricted funds - general
Restricted funds|**Total**
**2020**
**£**
49,879
**2020**
**£**
106,353
10,052
116,405
20,052
96,353
116,405|Total
2019
£
152,893| |---|---|---| |||**2019**
**£**
57,279
-| |||57,279| |||-
57,279| |||57,279| ## **4 Provision of leisure facilities** Richard Place Dobson page 13 ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **6 Other income** |**Unrestricted**
**funds**
**general**
**2020**
**£**
Other income
600
**7**
**Charitable activities**|Total
2019
£
-| |---|---| ||| ||**Provision of**|**Provision of**| |---|---|---| ||**leisure**|**leisure**| ||**facilities**|**facilities**| ||**2020**|**2019**| ||**£**|**£**| |Depreciation and impairment|27,795|48,728| |Donations/support for sports|25,597|37,500| |Sporting Initiatives|-|112| |Repairs, maintenance and improvements|178,592|76,645| |Insurance|11,649|13,275| |Sundry Expenses|5,261|110| ||248,894|176,370| |Support costs|3,314|-| |Governance costs (see note 8)|4,183|4,647| ||256,391|181,017| |**Analysis by fund**||| |Unrestricted funds - general|26,667|21,374| |Unrestricted funds - Designated fund|44,862|57,633| |Restricted funds|184,862|102,010| ||256,391|181,017| Richard Place Dobson page 15 ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **8 Support costs** |**Support costs Governance**
**costs**
**£**
**£**
Loan interest
3,314
-
Accountancy
-
3,000
Legal and professional
-
1,183
3,314
4,183
Analysed between
Charitable activities
3,314
4,183|**2020**Support costs
Governance
costs
**£**
£
£
3,314
-
-
3,000
-
3,000
1,183
-
1,647
7,497
-
4,647
7,497
-
4,647|2019
£
-
3,000
1,647| |---|---|---| |||4,647| |||4,647| Governance costs includes payments to the accountants of £ 3 ,000 for independent examination fees (2019- £ 3,000 ) . ## **9 Net movement in funds** |**Net movement in funds**|**2020**|**2019**| |---|---|---| ||**£**|**£**| |Net movement in funds is stated after charging/(crediting)||| |Depreciation of owned tangible fixed assets|27,795|48,728| ## **10 Trustees** ## **Trustees' Remuneration and Benefits** There were no trustees' remuneration or other benefits for the year ended 30 September 2020 nor for the year ended 30 September 2019. ## **Trustees' Expenses** There were no trustees' expenses paid for in the year ended 30 September 2020 nor for the year ended 30 September 2019. Richard Place Dobson page 16 **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **11 Tangible fixed assets** |**Freehold land**
**£**
**Cost**
At 1 October 2019
2,120,531
At 30 September 2020
2,120,531
**Depreciation and impairment**
At 1 October 2019
216,619
Depreciation charged in the year
6,567
At 30 September 2020
223,186
**Carrying amount**
At 30 September 2020
1,897,345
At 30 September 2019
1,903,912|**Pitches**
**£**
2,124,060
2,124,060
1,546,820
21,228
1,568,048
556,012
577,240|**Total**
**£**
4,244,591| |---|---|---| |||4,244,591| |||1,763,439
27,795| |||1,791,234| |||2,453,357| |||2,481,152| Freehold land and buildings were donated to the charity at a value of £1,586,364 during the year ended 30 September 2003. Freehold land was donated to the charity during the year ending 30 September 2017 with a value of £50,000, and during the year ending 30 September 2019 with a value of £80,000. All freehold land and buildings are included in the financial statements at lower of cost, donated value or residual value agreed by the directors. In the opinion of the directors, the open market value of the freehold land and buildings is not less than the stated value. In respect of the loan taken out from Barclays Bank in September 2008 (See Note 13), there is a legal charge over the land and buildings of East Grinstead Sports Club. There is a second legal charge over the netball courts in favour of Sport England, and a third over the squash courts in favour of England Squash and Rac k etball. ## **12 Debtors** |**Debtors**||| |---|---|---| |**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income
VAT|**2020**
**£**
17,286
11,503
-
28,789|**2019**
**£**
16,423
282
643| |||17,348| Richard Place Dobson page 17 ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **13 Loans and overdrafts** |Loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments|**2020**
**£**
50,080
8,108
41,972
6,702|**2019**
**£**
66,765| |---|---|---| |||7,604
59,161| |||14,810| In December 2005, the charity entered into a loan agreement with D Brown, with an amount of £98,000 at an interest rate of Nil%. This loan is currently repayable at £1,000 per calendar month. It was agreed from June 2017 that the repayments would be suspended. The situation is reviewed annually, with the suspension of payments agreed again for a further year from June 2020. In September 2008, the charity entered into a loan agreement with Barclays Bank Plc, with an amount of £100,000 at an interest rate of 2% over the Barclays Base Rate. This loan was repaid monthly over a period of 10 years. As part of the agreement, Barclays Bank Plc has security by way of a charge over: Leisure Centre, Saint Hill Road, East Grinstead, a property owed by the charity. This loan was fully repaid as at the end of September 2018, and the Trustees are in the process of removing this charge. In July 2010, the charity entered into a loan agreement with D Brown, with an amount of £100,000 at an interest rate of 4%. This loan is currently repayable at £1,027 per calendar month, inclusive of interest. A continued suspension of repayment was agreed in June 2019. The situation will be reviewed annually. ## **14 Creditors: amounts falling due within one year** |**Notes**
Loans
Other taxation and social security
Deferred income
Other creditors
Accruals
**Creditors: amounts falling due after more than one year**
Loans|**2020**
**£**
8,108
540
1,329
22,640
2,200
34,817
**2020**
**£**
41,972|**2019**
**£**
7,604
-
14,515
8,484
699| |---|---|---| |||31,302| |||**2019**
**£**
59,161| ## **15 Creditors: amounts falling due after more than one year** Richard Place Dobson page 18 |73,657
130,162
(102,010)
101,809
146,550
(184,862)
761|Covid restricted grants
-
-
-
-
5,250
(5,261)
11|Park Run
-
112
(112)
-
-
-
-|Cricket Fund
4,487
6,101
(3,101)
7,487
750
(2,224)
-|Facility improvements / Development projects
-
51,067
(51,067)
-
76,103
(76,103)
-|Badminton Fund
-
8,873
(4,880)
3,993
-
-
-|Netball Fund
6,761
7
-
6,768
2,021
-
-|Hockey Pitch Sinking Fund
43,909
22,236
-
66,145
37,336
(75,679)
750|Hockey fund
-
41,750
(37,500)
4,250
25,052
(25,595)
-|Squash court sinking fund
12,107
16
-
12,123
38
-
-|3G pitch fund
6,393
-
(5,350)
1,043
-
-
-|**£**
**£**
**£**
**£**
**£**
**£**
**£**||**1 October 2018**
**resources**
**expended**
**1 October 2019**
**resources**
**expended**|**Balance at**
**Incoming**
**Resources**
**Balance at**
**Incoming**
**Resources**
**Transfers**|**Movement in funds**
**Movement in funds**| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |64,258|-|-|6,013|-|3,993|8,789|28,552|3,707|12,161|1,043|**£**|**2020**|**30 September**|**Balance at**|| |September 2020.|The Development projects fund has been set up to meet expenditure on projects that have been agreed upon by the Charity, or are envisaged with the Charity's future plans, as at 30|The Land and Buildings Fund is set aside to represent the charity's use of land and buildings.||2,440,545
104,324
(57,633)
20,000
2,507,236
13,324
(44,862)
25,000
2,500,698|Development projects
25,000
-
(8,905)
20,000
36,095
-
(13,753)
25,000
47,342|Land building and pitches
2,415,545
104,324
(48,728)
-
2,471,141
13,324
(31,109)
-
2,453,356|**£**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
**£**|**2020**|**1 October 2018**
**resources**
**expended**
**1 October 2019**
**resources**
**expended**
**30 September**|**Balance at**
**Incoming**
**Resources**
**Transfers**
**Balance at**
**Incoming**
**Resources**
**Transfers**
**Balance at**|**Movement in funds**
**Movement in funds**|The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the Directors for specific purposes:|**17**
**Designated funds**| |---|---|---|---|---|---|---|---|---|---|---|---|---|---| |17,293|Long term liabilities
-|Current assets/(liabilities)
17,293|Tangible assets
-|Fund balances at 30 September 2020 are represented by:|**£**|**2020**|**funds**|**Unrestricted**|**18**
**Analysis of net assets between funds**| |---|---|---|---|---|---|---|---|---|---| |2,500,698|(41,972)|89,313|2,453,357||**£**|**2020**|**funds**|**Designated**|| |64,258|-|64,258|-||**£**|**2020**|**funds**|**Restricted**|| |2,582,249|(41,972)|170,864|2,453,357||**£**|**2020**||**Total**|| |10,287|-|10,287|-||£|2019|funds|Unrestricted|| |2,507,236|(59,161)|85,245|2,481,152||£|2019|funds|Designated|| |101,809|-|101,809|-||£|2019|funds|Restricted|| |2,619,332|(59,161)|197,341|2,481,152||£|2019||Total|| ## **EAST GRINSTEAD SPORTS CLUB LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **19 Related party transactions** There were no disclosable related party transactions during the year (2019 - none). ## **20 Impact of Covid-19** As a result of the covid-19 pandemic the facilities at the club have been closed for a large part of the latter half of the current year, and for several months after the year end, as required by Government guidance. When possible the facilities have been opened and made available subject to new procedures being put in place to meet Government guidelines and for the safety of users. At the date of the approval of these accounts it has not been possible to quantify or ascertain with any certainty the financial impact of COVID-19. No adjustments have been made to any figures in the accounts as a result of the pandemic. Richard Place Dobson page 23